Another new grinch like Labor tax has seen thousands of property owners slapped with a large tax bill from the State Revenue Office (SRO) right on Christmas.
The Vacant Residential Land Tax (VRLT) is one of the 56 new or increased taxes introduced by the Allan Labor Government and is applied in addition to the Short Stay Rental Tax on properties.
The Nationals’ Melina Bath said Labor VRLT targets families and individuals who have more than one additional property to their family home, such as a holiday house, Airbnb rental or an apartment in the city.
“Labor’s new tax primarily has two aims – raise revenue to help pay for its billion-dollar budget blowouts on mismanaged city centric big builds or force people to sell their properties to help address the housing crisis it created.”
The VRLT is unavoidable if a property owner has more than two homes, i.e.: primary residence, plus a holiday home and an apartment in the city or if the second home is a short stay rental.
For people who have two residences, they will need to prove to the State Revenue Office that the second home has not be unattended for six months and lived in for four or more weeks.
Ms Bath said the timing of Labor’s new housing tax could not be worse.
“People have contacted me seeking assistance and an explanation of the tax, they are genuinely shocked to receive a large tax bill right on Christmas during a cost-of-living crisis.
“They are distressed to find out the tax levy increases in subsequent years.
“Labor’s new attack on mum and dad investors will adversely impact the holiday rental market and visitor economy in East Gippsland, South Gippsland, Wellington, Bass Coast, Mornington, Yarra Ranges and our mountain communities.
“Short stay rentals enable families to enjoy a holiday in our regional areas and they provide housing for visiting workers.
“The Allan Government should be incentivising tourism outside of the tram tracks of Melbourne, not restricting it.
“More visitors in our smaller towns equates to more support for our local hospitality businesses and our struggling retail sector.
“Labor cannot manage money, can’t manage tourism and regional Victorians are paying the price.”
